Peugeot has revealed plans to put a hybrid car powered by air on the market in 2016. This new ‘Hybrid Air’ system has an engine that runs on petrol and air, instead of the traditional electric hybrid. Peugeot say that this new model will reach 117 miles per gallon by 2020 and reduce petrol bills by 80% for urban driving.

The car model looks like a Peugeot 208, but the engine is transformed combining a normal engine with an additional system that runs on compressed air. These compressed air cylinders store and release energy, allowing it to run on petrol, air or even a combination.

Apparently, cars with Hybrid Air will not only be cheaper to run, but be around £1,000 cheaper to buy than current hybrid models. However, it’s best suited to city life as the air power is only automatically activated when the car goes less than 43mph.

So, although it may not be the slickest or fastest car, it definitely seems cost effective to run if you’re an urbanite.